Bowleven pleased with progress in Cameroon

GARETH MACKIE

Edinburgh-based oil and gas explorer Bowleven today said it was making good progress with an onshore development in Cameroon.

The Africa-focused firm, led by chief executive Kevin Hart, said an extended flow testing programme at its Bomono permit has been completed as part of plans to supply gas for a power scheme in the region.

“The results to date continue to support plans for an initial supply of around five to six million standard cubic feet of gas per day,” the Aim-quoted company told investors.

Hart recently said that a positive outcome from its tests “could deliver a home grown revenue stream for the group in the near-term”.

He said today: “We are pleased with the results of the extended flow testing programme at Bomono and are now looking forward to advancing gas sales negotiations and development planning.”

Shore Capital analyst Craig Howie said: “We estimate that commercial production from the Bomono permit could be achievable in circa 12 months, providing Bowleven with its first gas revenues in Cameroon.

“In the meantime, we highlight Bowleven’s reported net cash balance of circa $120 million (£82m), which provides significant valuation support in our opinion, and recently announced entry into Tanzania via the proposed deal with Aminex, which brings exposure to a near-term producing gas asset combined with higher impact exploration and appraisal upside.”